Electronic Trading Tutorial
  1. Electronic Trading: Introduction
  2. Electronic Trading: The Nasdaq Vs. The NYSE
  3. Electronic Trading: The Role of a Specialist
  4. Electronic Trading: The Role of a Market Maker
  5. Electronic Trading: SuperDOT
  6. Electronic Trading: Electronic Communications Networks (ECNs)
  7. Electronic Trading: Small Order Execution System (SOES)
  8. Electronic Trading: Level I, II and III Access
  9. Electronic Trading: Conclusion

Electronic Trading: Introduction


When it comes to electronic trading, for most individual investors, taking a long-term buy-and-hold approach is probably the best strategy. Most of us simply don't have the time or the expertise to trade for a living. But for some investors, trading can be an extremely lucrative profession.

There have always been professionals who made their living off of trading. It wasn't until recently, however, that technology enabled individuals who weren't working for a brokerage to directly access the markets. This tutorial will delve into the workings of the electronic systems that allow this direct access. We'll also talk about the differences between the New York Stock Exchange (NYSE) and the Nasdaq and learn how market trades are executed, both by market makers and by specialists.

Whether you are an aspiring trader or a seasoned investor looking to find out how it all works, this tutorial explains all the nitty-gritty electronic trading systems in layman's terms. Is electronic trading a new way for you to build you own portfolio? Read on to find out!

(If you aren't familiar with stocks and trading on the stock market, read Stock Basics Tutorial.)

Electronic Trading: The Nasdaq Vs. The NYSE

  1. Electronic Trading: Introduction
  2. Electronic Trading: The Nasdaq Vs. The NYSE
  3. Electronic Trading: The Role of a Specialist
  4. Electronic Trading: The Role of a Market Maker
  5. Electronic Trading: SuperDOT
  6. Electronic Trading: Electronic Communications Networks (ECNs)
  7. Electronic Trading: Small Order Execution System (SOES)
  8. Electronic Trading: Level I, II and III Access
  9. Electronic Trading: Conclusion
RELATED TERMS
  1. Designated Order Turnaround - DOT (SuperDOT)

    An electronic system that increases order efficiency by routing ...
  2. Electronic Communication Network (ECN)

    An electronic system that attempts to eliminate the role of a ...
  3. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  4. Over-The-Counter Exchange Of India - OTCEI

    An electronic stock exchange based in India that is comprised ...
  5. Hybrid Market

    A securities exchange that facilitates trading through a blend ...
  6. Write Out

    A dual trade transaction enacted by a specialist in an individual ...
RELATED FAQS
  1. What is the electronics sector?

    Learn more about the electronics sector and the challenges and opportunities presented to electronics companies by new and ... Read Answer >>
  2. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Answer >>
  3. What kind of assets can be traded on a secondary market?

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  4. What other sectors are most similar to electronics?

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  5. Why would an investor consider purchasing electronic stocks for their portfolio?

    Discover why an investor would consider buying electronics securities as part of an investment portfolio and which stocks ... Read Answer >>
  6. Why would growth investors be attracted to the electronics sector?

    Learn why growth investors gravitate to the two segments of the electronics sector, both of which exhibit greater volatility ... Read Answer >>
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